The present invention provides a catheter balloon, and balloon catheter incorporating the catheter balloon, useful in medical dilation procedures. The catheter balloon includes at least one microscalpel operatively disposed on an outer surface thereof. The microscalpel may advantageously be operatively disposed relative to a power source so as to be controllably activatable. Also provided are methods of making the inventive balloon and/or catheter as well as methods of using the inventive catheter in a dilation/incising treatment.